Question

Which of the following is true regarding Salary to a partner when the firm maintains fluctuating capital accounts?

(A) Debit Partner’s Loan A/c and Credit P & L Appropriation A/c.

(B) Debit P & L A/c and Credit Partner’s Capital A/c.

(C) Debit P & L Appropriation A/c and Credit Partner’s Current A/c.

(D) Debit P & L Appropriation A/c and Credit Partner’s Capital A/c.

Answer 1

Correct option is (D) Debit P & L Appropriation A/c and Credit Partner’s Capital A/c.